U.S. stock futures are higher this morning after a drop in the number of new coronavirus cases in China. The news raises hopes that the economic fallout from the virus will not be as bad as expected. Later today, Fed Chair Powell will conclude his semiannual testimony before the Senate Banking Committee, and the Chairman is likely to continue with a dovish expectation for the U.S. economy.
The S&P 500 moved past resistance at 3333.18 to close at another new all-time high at 3357.75 on Tuesday. The move came on below-average volume, and the rally faded late in the day. The RSI index did move higher in support of the move but did not make a new high along with the S&P 500. So, the new highs continue to be suspect until the confirming indicators also move higher. Potential support should now become 3352.26, and possible resistance could come at 3375.63.
We are currently long-term bullish and short-term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Dominguez & Jones Wealth Management Group
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.